Question
Suppose the market demand function (expressed in dollars) for a normal product is P = 2000 - 4Q and the Supply Curve is P= 250
Suppose the market demand function (expressed in dollars) for a normal product is P = 2000 - 4Q and the Supply Curve is P= 250 + 5Q, where P is the price of the product and Q is the quantity demanded or supplied. Assume that the Marginal External Cost curve is MEC = 30 + 4Q. Here are the specific questions: (show all your calculations and draw the graph. In a competitive market
What is the equilibrium price and quantity?
How is the total external cost (TEC)?
In the socially efficient system,
What is the efficient output and price?
What is the efficient Pigouvian tax?
How much is the total external cost (TEC)?
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Statistical Techniques In Business And Economics
Authors: Douglas Lind, William Marchal, Samuel Wathen
14th Edition
0077309421, 978-0077309428
